Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Friday, January 17, 2014

No TDS on Service Tax Component for payment to resident

No TDS on Service Tax Component for payments to resident
Circular No. 01/2014 issued by CBDT on 13 January 2014 :  CBDT Clarified that TDS is not required to be deducted on the Service tax component comprised in the amount payable to a resident if Service tax has been charged separately wherever so provided by the agreement/ contract between the payer and the payee.
Earlier it was restricted to Service tax on Rent Only as per Circular No 4/2008 dated 28 April 2008. In above mentioned circular CBDT clarified that tax deduction at source (TDS) under sections 194-I of Income-tax Act would be required to be made on the amount of rent paid/payable without including the service tax. 

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